Nikki Ali and Donald Ankard borrowed $15,000 to help finance their wedding and reception. The annual payment loan carries a term of seven years and an 11 percent interest rate. The amount of the first payment that is interest and the amount of the second payment that is principal are approximately: Interest Principal A) $1,650 $1,468 B) $1,468 $1,702 C) $1,468 $1,468 D) $1,650 $1,702
A justice of the peace costs $50.
True. During college however I worked part time at a banquet hall which did a ton of weddings. I could not fathom some of the invoice totals. On top of that, a CNN report I saw awhile ago explained that people have more spouses than kids these days. Really gives one an distaste towards taking the plunge.
I’m at 4 kids - 2 spouse so I’m still OK I guess.
Good to hear. I’m sure there is a few positive outliers skewing the mode though!
Answer choice D Pv=-15000 N=7 I/Y=11 CPT PMT=3183 15000 * .11 = 1650 ==> Interest Year 1 Principal Paid Yr 1 = 3183 - 1650 = 1533 Remaining Principal = 15000 - 1533 = 13467 Year 2: Interest: 13467 * .11 = 1481 Principal: 3183 - 1481 = 1702 Answer D CP
Choice E: Luckily marry girl whose parents are well off enough to pay for the reception and the wedding. $0 $0
Maybe if this guy lived within his means instead of financing an extravagant party, he wouldn’t get divorced. One of the biggest reasons for divorce in the US stem from money issues. If this couple went to a justice of the peace and had their cousin dj the dinner at some Elk’s club, they would have $3183.23 more dollars per year towards something worthwhile , maybe even towards savings to buy some real estate.
dod97001 Wrote: ------------------------------------------------------- > Maybe if this guy lived within his means instead > of financing an extravagant party, he wouldn’t get > divorced. One of the biggest reasons for divorce > in the US stem from money issues. If this couple > went to a justice of the peace and had their > cousin dj the dinner at some Elk’s club, they > would have $3183.23 more dollars per year towards > something worthwhile , maybe even towards savings > to buy some real estate. Women must find you very romantic
dod97001, I’m with you (not to the extreme you are proposing, but I like the general idea). I might change my mind 5 years from now, when 15,000 will be pocket change (inflation at 4%??), but still. Plus, what’s with this business of the engagement ring being twice your monthly salary? De Beers knows how to put a price on love… That’s no longer romanticism - it’s just your average close-minded consumerism…
no kidding… I’m getting married this weekend. We’re having a beautiful wedding that I’m sure will be great, but it’s a colossal waste of money as far as I’m concerned. Even though my fiance’s parents are footing the bill, the money could be used in about 1000 more practical ways. Personally, instead of a wedding I’d rather pay $50 at the courthouse and: a) buy a house b) retire 1-2 YEARS earlier c) pay off grad school loans Weddings are the worst. Sincerely, Scrooge
hey, it IS the wedding, the ceremony for the bonding of two people with true love. It should be priceless. I’m 22 btw and am a hopeless romantic.
this post is adorable guys.
They must really love each other to finance their wedding at 11%. Goodness!
Haha, seriously. I hope she doesn’t take his last name…how unfortunate sounding. Do you think it would be violate any ethical standards if I changed my last name to CFA?
how about paying 11% for next 7 years + 17% of your salery on alamony after getting divorced in 2years
17% would be sweet…
It’s D. You can easily look up the answers using the amortization worksheet in the BAII Plus. Major timesaver. Now if only there was a problem where you incorporated the cost of divorce…